Our country.
Residents in first- and second-tier cities own their own housing, and calculate the virtual rent according to the market rental price
Introductory. Today, China's urbanization is accelerating, and more and more people are realizing home ownership. However, how to calculate the fictitious rent of these owner-occupied homes has always been a difficult problem. According to the National Accounting System of China (2002), the cost method is used for self-owned housing, and in the revision of the National Accounting System of China (2016), China has gradually introduced the market rent method. This paper focuses on the accounting of virtual rents for residents' own housing in China's first- and second-tier cities, and looks forward to future changes.
Changes in accounting for owner-occupied housing.
1.1 Cost accounting method: In GDP accounting, according to the National Accounting System of China (2002), the cost method is used for the owner-occupied housing of urban and rural residents. That is, if a resident does not actually rent but lives in a house he or she bought, then the virtual rent must be included in the GDP accounting. Virtual rent includes costs such as maintenance service fees, management fees, and virtual amortization.
1.1.1 Lack of market data: However, compared with Western countries such as the United States, the European Union, and Japan, the residential rental market in most parts of China is not perfect enough and lacks rental data. Therefore, it is not possible to use the market rent method to account for the fictitious rent of resident-owned housing.
1.2 Introduction of the market rent method: The revised edition of China's System of National Accounts (2016) introduced the market rent method as an accounting method for the fictitious rent of urban residents' own housing. According to this method, although there is no actual rental behavior of residents' own housing, they need to rely on the surrounding rental market of the same type"Virtual rentals"Inclusion in statistics.
1.2.1 The gradual introduction of the market rent method: However, due to the underdeveloped housing rental market in most cities in China, the proportion of rental housing is low, and the rental data is poorly representative.
Outside of first- and second-tier cities, China still uses the cost method to account for the added value of services provided by owner-occupied housing. However, this situation is expected to gradually change after the new round of national economic census, and the market rent law will cover urban areas across the country.
Impact of accounting methods.
2.1 Reflecting the rising cost of living in the city: Using the market rent method to account for the fictitious rent of owner-occupied housing can more accurately reflect the rise in the cost of living in the city. Since the market rent is calculated on the basis of the real rental market, its value is more in line with the actual market situation and can reflect the difference in the cost of living in different cities and regions.
2.1.1 Fairness of the market rent law: The introduction of the market rent law has also made the rights and interests of different groups of residents more equitable. In the past, when costing was applied, the property purchased by the resident generated a higher fictitious rent in the GDP statistics, making the wealth of the residents living in the owner-occupied housing appear higher, when in fact they did not receive rental income. The market rent method can better reflect the differences in housing consumption among residents.
2.2 Promote the development of the residential rental market: With the gradual implementation of the market rent law, the housing owned by urban residents will be closer to the real market rent**. This will promote the development of the residential rental market and improve the liquidity and efficiency of the market. At the same time, the healthy development of the rental market will also provide residents with more housing options and improve living flexibility.
2.2.1. Guiding the concept of rational consumption: For some residents, the virtual accounting of self-housing rent will trigger a reflection on rent expenditure. Including owner-occupied housing in rental accounting can allow residents to think more rationally about real estate investment and consumption, and avoid over-reliance on the wealth brought by property appreciation.
Future outlook and thinking.
3.1. Improving the rent data collection system: In the process of gradually expanding the scope of application of the market rent law, it is important to improve the rent data collection system. Only by having accurate and reliable market rent data can we more accurately calculate the virtual rent of resident-owned housing and reflect the real situation of the city's cost of living.
3.2. Promote the reform of the rental market: With the gradual implementation of the market rent law, the reform of the rental market will become an important topic. Strengthening the supervision and regulation of the rental market and improving the quality and quantity of rental housing can effectively respond to the diversity of residents' housing needs and increase the flexibility and convenience of living.
Conclusion. Through the discussion of this article, we learned about our country.
The accounting method of virtual rent for residents' own housing in first- and second-tier cities has gradually changed from the cost method to the market rent method. This change reflects the requirements of China's economic development and the rising cost of living for residents. In the future, with the joint efforts of improving the rental data collection system and promoting the reform of the rental market, the gradual application of the market rent law will provide a more accurate and fair housing consumption environment for Chinese residents. At the same time, we should also realize from our own rational consumption concept that real estate investment should not be excessive, but should be flexible in a more selective real estate market to achieve continuous growth of personal wealth and improvement of quality of life.